HHS Spends $24.7M on Management Consulting, Awarded via Full and Open Competition

Contract Overview

Contract Amount: $24,761,253 ($24.8M)

Contractor: Qlarant Integrity Solutions LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2009-09-04

End Date: 2016-10-31

Contract Duration: 2,614 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: AUDIT MIC TO #5

Place of Performance

Location: EASTON, TALBOT County, MARYLAND, 21601

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.8 million to QLARANT INTEGRITY SOLUTIONS LLC for work described as: AUDIT MIC TO #5 Key points: 1. Significant spending on administrative management consulting services. 2. Awarded through full and open competition, suggesting a competitive process. 3. Long contract duration (2009-2016) indicates sustained need. 4. No explicit small business set-aside noted.

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee (CPAF), which can lead to higher costs if not managed carefully. Benchmarking against similar contracts for administrative management consulting is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which generally promotes competitive pricing. However, the Cost Plus Award Fee structure requires robust oversight to ensure cost-effectiveness.

Taxpayer Impact: Taxpayer funds were utilized through a competitive process, but the CPAF structure necessitates careful monitoring to ensure value for money.

Public Impact

Impacts healthcare administration and management processes. Services provided by Qlarant Integrity Solutions LLC. Contract supported Centers for Medicare and Medicaid Services operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee structure can incentivize higher costs.
Long contract duration may indicate potential for vendor lock-in or lack of re-evaluation.
Lack of small business participation noted.

Positive Signals

Awarded via full and open competition.
Services align with critical healthcare administration functions.

Sector Analysis

Spending falls within the professional services sector, specifically administrative management and general management consulting. Benchmarks for this category vary widely based on the specific services rendered and agency.

Small Business Impact

The data indicates that this contract was not set aside for small businesses. Further analysis would be needed to determine if small businesses had an opportunity to participate as subcontractors.

Oversight & Accountability

The Cost Plus Award Fee contract type requires diligent oversight from the agency to ensure that award fees are justified and that costs remain reasonable. The long duration also suggests a need for ongoing performance monitoring.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Potential for cost overruns due to CPAF structure.
Lack of transparency on specific services provided.
Long contract duration may not reflect current needs or market prices.
No explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.8 million to QLARANT INTEGRITY SOLUTIONS LLC. AUDIT MIC TO #5

Who is the contractor on this award?

The obligated recipient is QLARANT INTEGRITY SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $24.8 million.

What is the period of performance?

Start: 2009-09-04. End: 2016-10-31.

What specific administrative management and general management consulting services were provided under this contract, and how did they contribute to the Centers for Medicare and Medicaid Services' mis

The provided data lacks specifics on the exact services rendered. However, general management consulting typically involves areas like process improvement, strategic planning, operational efficiency, and program management. These services likely supported CMS's complex administrative functions, potentially improving the efficiency and effectiveness of healthcare programs and beneficiary services.

Given the Cost Plus Award Fee structure, what mechanisms were in place to ensure that Qlarant Integrity Solutions LLC's performance justified the award fees and that costs were controlled?

A Cost Plus Award Fee (CPAF) contract requires a well-defined performance evaluation plan and objective criteria for determining award fees. CMS would have needed to establish clear metrics and regularly assess Qlarant's performance against these metrics. Robust oversight and regular audits would be crucial to ensure costs were reasonable and award fees were earned based on exceptional performance, not just baseline service delivery.

How did the full and open competition process ensure the best value for taxpayers, considering the contract's duration and CPAF structure?

Full and open competition theoretically allows multiple vendors to bid, driving down prices and fostering innovation. However, the CPAF structure introduces complexity. While competition sets the initial stage, effective contract management and performance monitoring are paramount to realizing best value. The long duration means sustained vigilance was necessary to ensure the services remained necessary and cost-effective throughout the contract period.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Qlarant Inc

Address: 9240 CENTERVILLE RD, EASTON, MD, 21601

Business Categories: Category Business, Nonprofit Organization, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,761,253

Exercised Options: $24,761,253

Current Obligation: $24,761,253

Actual Outlays: $42,015

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSM500200800002I

IDV Type: IDC

Timeline